OpenAI is on the verge of securing a funding deal that could exceed $100 billion, with its valuation potentially surpassing $850 billion, according to sources cited by Bloomberg.
This funding initiative comes as the company, known for its AI model ChatGPT, seeks to enhance its profitability amid rising operational costs. OpenAI has recently begun testing advertisements within ChatGPT for its free users, a strategic move that could either boost its revenue or risk alienating its user base.
Investors appear optimistic, valuing OpenAI at $20 billion more than the initial expectation of an $830 billion valuation. Bloomberg's sources indicate that the company's pre-money valuation will remain at $730 billion.
The first rounds of investment are reportedly being led by major players such as Amazon, which is in discussions to potentially invest up to $50 billion, SoftBank, which is preparing to contribute $30 billion, Nvidia, eyeing a $20 billion stake, and Microsoft. Additional investments from venture capital firms and sovereign wealth funds are anticipated, which could further elevate the total funding amount.
TechCrunch has reached out to OpenAI for further comments regarding this significant funding round.
